Refinancing Borrowers Shun ARMs in Q4. Opt for Shorter Loan Terms

Hot news from AZ Home Help:

Posted To: MND NewsWire

Americans are increasingly turning away from variable rate mortgage products when refinancing according to the Quarterly Product Transition Report issued by Freddie Mac. An increasing share of refinancing borrowers also chose to shorten their loan terms during the fourth quarter. In the fourth quarter of 2010, fixed-rate mortgages (FRM) accounted for more than 95 percent of all loans used for refinance. Frank Nothaft, Freddie Mac vice president and chief economist commented that "Fixed mortgage rates continued to slide lower during the first part of the fourth quarter, reaching 4.17 percent for the 30-year mortgage in mid-November in Freddie Mac's Primary Mortgage Market Survey® and the lowest fixed rates since the early 1950s. It's no wonder borrowers are attracted to fixed-rate loans...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com